Quarterly report pursuant to sections 13 or 15(d)

2. Summary of significant accounting policies (Tables)

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2. Summary of significant accounting policies (Tables)
 3 Months Ended
Mar. 31, 2013
Notes to Financial Statements  
A reconciliation of basic and diluted shares

A reconciliation of basic and diluted shares for the periods ended March 31, 2013 and 2012 follows:

 

    March 31, 2013     March 31, 2012  
Average common shares outstanding – basic     150,112,286       118,213,662  
Effect of dilutive securities                
Warrants     12,269,883       –  
Options     10,079,500       –  
Average diluted shares     172,461,669       118,213,662  
Outstanding securities

At March 31, 2013 and 2012, we excluded the outstanding securities summarized below, which entitle the holders thereof to acquire shares of common stock, from our calculation of earnings per share, as their effect would have been anti-dilutive.

 

    March 31, 2013     March 31, 2012  
Warrants     14,782,301       52,963,339  
Options     17,198,598       28,049,558  
Total     31,980,899       81,012,897  
Investments and liabilities of the Company's financial assets measured and recorded at fair value

The following table presents certain investments and liabilities of the Company’s financial assets measured and recorded at fair value on the Company’s condensed consolidated balance sheets on a recurring basis and their level within the fair value hierarchy as of March 31, 2013 and December 31, 2012.

 

    Level 1       Level 2     Level 3     Total  
Fair value of Derivative Liability-March 31, 2013 $  -0-     $  -0-     $ -0-     $ -0-  
Fair value of Derivative Liability-December 31, 2012 $  -0-     $  -0-     $ 3,221,138     $ 3,221,138